Global study finds women workers continue to be at a disadvantage relative to male counterparts
With increasing control of their finances and a greater share of wealth in their hands, it’s no surprise that women are reporting higher levels of financial confidence. But a study from the Transamerica Center for Retirement Studies suggests that among workers, the scales are still tilted in men’s favour.
“Women's workforce participation and access to career opportunities have soared in recent decades,” said Catherine Collinson, CEO and president of nonprofit Transamerica Institute and TCRS. “However, the gender pay gap persists.”
The study, which is based on an annual survey of 15 countries, found that the gender gap in education is almost closed. Despite that, women around the world remain more likely than men to take on forms of unpaid work such as household welfare, childcare, and caregiving.
Even if they’re in the workforce, women lag their male peers in various ways. As of 2019, women were less likely to hold upper or intermediate managerial, administrative or professional roles (managerial). Women were also twice as likely to hold part-time jobs as men (22% vs 11%), though the gap was narrower in Canada (25% vs. 17%).
Because of the apparent difference in opportunities, the income gap between men and women widens over time starting around the age of 30. Globally, the study found women workers have a median annual personal income of US$20,574, while male workers earn US$27,794 on average. In Canada, the median annual personal income for female workers stands at US$44,188, compared to US$54,121 for men.
The upshot, according to the report, is a disparity in feelings of retirement readiness between the two genders. Around the world, just over one fourth of women workers surveyed (26%) said they feel very or extremely confident that they’ll achieve a comfortable retirement, compared to nearly a third of male workers (32%). There’s a greater rift in retirement income expectations, as 21% of women workers and 29% of their male peers reported feeling on course to achieve the income they expect to need in retirement.
The study also showed global and per-country scores based on the Aegon Retirement Readiness Index (ARRI), which ranks retirement preparedness from 0 to 10. Working women around the world got an average score of 5.8, while their male peers scored 6.2; in Canada, female and male workers scored 5.7 and 6.2 on average, respectively.
Looking at ARRI scores over time, female workers improved their score from 5.5 in 2014 to 5.8 in 2019. However, those in Canada saw a decline from 5.9 to 5.7 over the same period.
